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Customs and CTC to destroy largest fag haul in SL history today

15 June 2023 06:36 am - 18     - {{hitsCtrl.values.hits}}

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Sri Lanka Customs along with the Ceylon Tobacco Company (CTC) will destroy the largest haul of illicit cigarettes detected in the country’s history, which is over 200 million sticks came in 21 containers in 2021 with an estimated value of Rs.9.7 billion, in Muthurajawela today.

Top officials of the Customs Department including its chief Sarath Nonis with subject minister, State Minister of Finance Ranjith Siyambalapitiya will witness the destruction of seized tobacco at Waste to Energy thermal power generating plant in Muthurajawela this morning.

The massive haul of illicit cigarettes consist of over 200 million sticks had arrived in the country in 21 containers in May, 2021 from Dubai as part of an entrepot consignment to be reshipped to a numerous European destinations declared as Ceylon black tea.

Customs Compliance and Facilitation Division officials following a lengthy probe thwarted an attempt by a local businessman, who operated in the guise of a tea trader engaged in transshipments between the United Arab Emirates and the Netherlands.

The Daily Mirror reported on May 14, 2021 that the local exporter had received the contraband from another Sri Lankan living in Dubai and the contraband was to be reshipped to many destinations including the Netherlands, the United Kingdom and Germany. A local shipping line agency owner, a clearing and forwarding agency owner, a wharf clerk who were found guilty of this major smuggling attempt had been imposed with heavy fines from rupees three to four million each.

The contraband was displayed to the media at the Rank Container Terminal (RCT) in Orugodawatta in 2021 and a senior Customs official said it took more than two years to plan the destruction process.

The CTC holding a monopoly in the country’s cigarette manufactory and sales had signed a MoU with the Customs to destroy cigarettes detected by the latter. The CTC will pay one rupee to the Customs for every seized stick. The usual practice is to first crush the seized cigarettes in special tobacco crushers at the CTC premises in Kotahena, which will then be sent to destroy in the incinerators of the Holcim cement plant in Puttalam.

A senior Customs official told the Daily Mirror that this practice is not practical for a very large stock like this as transporting 21 container loads to Puttalam will involve a huge transporting cost etc.

Meanwhile, a senior official at the CTC told the Daily Mirror that the destruction will take place at waste to energy thermal power plant this time owing to the massive stock and they will destroy one container of fags per day again due to the same reason. Thus the destruction process, which is expected to last for more than two weeks, will commence today, the official said. (Kurulu Koojana Kariyakarawana)


  Comments - 18

  • Chumley Pinto Thursday, 15 June 2023 07:00 AM

    A very good decision. If you send it to Putlam it will come back in another truck the next day. Cigarette has no value. It has only negative value in our health sector

    Spartacus Thursday, 15 June 2023 07:12 AM

    Isn't it wise to sell this whole consignment to the international market than destroying it? This will bring much required foreign exchange to country. Let's not be stupid all the time with our decision making.

    Sambo Thursday, 15 June 2023 07:17 AM

    Why don't you give it to the smokers at a 50% discount and you will still earn over 5 billion. Mewa hena gahana aparada.

    Sivalingam Thursday, 15 June 2023 07:26 AM

    90% of the stuff sold in Pettah are smuggled.

    Avery Markham Thursday, 15 June 2023 07:29 AM

    Fine should be 100 times the value of the smuggled items.

    Jude Thursday, 15 June 2023 07:29 AM

    Can't understand why CTC still have a monopoly in SL cigarette market!! And it's only CTC selling cigarettes, they should be accountable for paying Levy for cancer hospital !!??

    Avery Markham Thursday, 15 June 2023 07:32 AM

    Have a mandatory prison term of 4 years for any items smuggled over 10 million (in additionto 100 times the value in fines). Ali Sabri would be in jail now.

    Kabir Hashim Thursday, 15 June 2023 07:33 AM

    Most of the stuff in Pettah are smuggled.

    Farewell parade in style Thursday, 15 June 2023 07:35 AM

    Go, tell this news to the birds. The only beneficiary is the CTC who eliminate competition to their products. But the Government incur massive expense in the process of destruction. Additionally, the state minister is joining the farewell parade which will add to the expense.

    Jayampathi Thursday, 15 June 2023 09:14 AM

    Why these seized items are not reselling calling international bids? It is a big foreign revenue for the country.

    johan Thursday, 15 June 2023 10:45 AM

    Why this was destroyed and was not utilized in proper way.Our politicians are penny wise pound foolish

    Tuan Thursday, 15 June 2023 11:22 AM

    CTC would not sell any other brand other than theirs. This could be the reason they are destroying it. However as someone had mentioned in this Colum CTC should be responsible in paying a levy to the Cancer Hospital which would be a good CSR imitative having the sole monopoly on cigarettes.

    Tiran Thursday, 15 June 2023 11:48 AM

    Why is the government spending so much money and destroying these goods in a way that is harmful to the environment?

    Karalasingam Sivalingam Thursday, 15 June 2023 01:03 PM

    Why destroy wealth, we are starving for dollars, why not sell locally and export at cheaper rates to needy countries and get a revenue. Smoking is not banned in Sri Lanka either.

    Gamini Thursday, 15 June 2023 03:13 PM

    The total economic cost of tobacco-related cancers for Sri Lanka is estimated to be US$100 million. If CTC is holding the monopoly, CTC must pay an annual levy to the Cancer Hospital.

    Tissa Fernando Thursday, 15 June 2023 09:20 PM

    Why not sell these officially and make some money out of it, why destroy sellable items? OK I cam understand if you destroy narcotics but this will only help Ceylon Tubacco Company. By selling these to the dealers, the government can make 8 billion, just give 1 billion yo the dealers and then the Inland Revenue can collect taxes from tge dealers too, Also , fine those who imported these flags at 300% of the value, so that is again Rs 18 Billions of income.

    Gamini Friday, 16 June 2023 05:22 AM

    Billions worth of cigarettes but only a three million fine and the culprits get away with it? That fine must be just pittance for them. Old rules of fines from colonial times have to be revised across the board to suit the modern day with not only massive fines but also with jail terms. Secondly, there should not be any monopoly in the country. Allow competition to bring prices down and in turn cost of living too . Thirdly with the corruption rampant all over the country there's no guarantee that it will really be destroyed. Fourthly if such a large volume is incinerated the smoke will have a considerable impact on the air quality in the vicinity. Why not compost it ?

    Dinesh W Friday, 16 June 2023 08:59 AM

    What a waste to keep CTC happy? The government could have sold these cigarettes kept the proceeds!


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